Mayor Rob Ford unaware of ex-aide's part in federal kickback scheme
Toronto Mayor Rob Ford says he was unaware that a former senior aide, Sheila Paxton, had participated in a federal kickback scheme about a decade ago.
“I didn’t know any of the history,” Ford said Friday at City Hall.
“It’s unfortunate, but I guess we’ve all made mistakes and she never did anything wrong to me. I like Sheila, and that’s all I have to say.”
Ford hired Paxton in 2012 as a policy adviser after she spent four years working as an executive assistant to Councillor Mark Grimes.
In 2006, Paxton admitted in court that she participated in the fraud scheme involving the defunct Human Resources Development Canada.
“I knew what we were doing was wrong,” she testified.
“I know that I paid secret commissions and that’s a crime.”
After Paxton left the federal agency, she and friend Joan Rowe, who remained at HRDC, co-operated to usher proposals through the approval process, in exchange for a cut of the funding, according to a transcript of Paxton’s testimony obtained by the Star.
If the project Paxton wrote proposals for received government funding, Paxton would split her 5 per cent commission equally with Rowe, she testified. In cases where Paxton submitted a joint proposal along with someone else, they would divide the 5 per cent three ways with Rowe.
In 2006, Rowe pleaded guilty to fraud and accepting bribes. She was sentenced to 28 months in prison and ordered to pay $500,000 in restitution.
Paxton cooperated with investigators and was not charged with any criminal offences. She testified against three alleged co-conspirators.
The federal government was defrauded of hundreds of thousands of dollars before the scam was uncovered in 2004.
She and a former partner are now being sued by the federal government, which is trying to recoup $330,000.
In a front-page story published in the Star, Paxton said what happened in the past “has absolutely nothing to do with city hall and nothing to do with my current job.”
On Friday, Paxton appeared grim-faced inside the office of Deputy Mayor Norm Kelly, who has refused to comment on the revelations. Paxton joined Kelly’s office last November, after city council stripped Ford of his powers and budget.
Councillor Karen Stintz stopped by to offer her support to Paxton. Stintz described Paxton as an “incredibly dedicated” and hard-working staff member.
“She’s always tried to do the right thing,” Stintz said after leaving the office.
The mayoralty candidate had been unaware of the kickback scandal, “but I can attest to her job performance at the city and I can say she’s an outstanding employee at the city.”
Councillor Denzil Minnan-Wong sent out a tweet that was an obvious reference to the story but declined to comment further.
“Staff in my office confirm that none of them are being sued/have criminal records,” his tweet said.
Councillor Adam Vaughan said he’s less concerned about Paxton than he is about lobbyists and influence peddling at city hall that raise serious questions about the “integrity around this place.”
Etobicoke resident Dan Irwin said Paxton has been supportive in a local fight against a cement mixing plant in Mimico, and her past causes him no unease.
“I personally have high regard for Sheila,” he wrote in email. “I think she is genuinely on our side.”
With files from Marco Chown Oved
